FAQ’s

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Declaring Bankruptcy - Can I go overseas?

Yes. All you need to do is apply to your bankruptcy trustee for permission to go. You’ll get it, but there is a one-page sheet you have to complete just to inform the trustee of how long you will be travelling, etc. This rule only truly exists so high flyers don’t skip the country. Sometimes the trustee will request your passport, but don’t worry about it considering that you can ask for it back when you want to travel. The big aspect of this is making certain that you actually ask– because if you overlook this then you can actually get in a lot of trouble. Call us if you want to understand more regarding travel on 1300 818 575.

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Can I keep my house even when declaring bankruptcy?

In many cases the answer is yes! In fact, in many cases these days we can really help you keep your home. At Bankruptcy Experts Maitland we are actually experts at helping people keep their homes. It’s actually very tricky, so if you are concerned about losing your home call us on 1300 818 575 and we will lead you through your choices. The notion of losing the family house is very likely the most common discouragement to people declaring bankruptcy. We talk with people daily who have wrestled for years under serious financial strain so they don’t lose their home. So how is it likely when declaring bankruptcy to keep your house? Easy, really; it’s a matter of equity. Let’s put it like this, if you own a house that’s worth $350,000 and you owe the bank $350,000 you essentially have no equity in the house, correct? The trustee will only sell your house if there is actually enough equity in the home, if sold, to repay a range of your debts. So for this specific scenario, the trustee will then offer you some solutions, one of which is to merely to carry on paying the mortgage and remain in the house while you are actually bankrupt. So how can I find out the value of my home before I experience the process and pain of declaring bankruptcy? A simple way is usually to go onto www.realestate.com.au and take a look at the sold houses tab in the Maitland area and it will display all the more recent sales in your neighborhood. Another possibility, if you are uncertain or are very anxious, is to have a registered valuer do a valuation on your home, not a real estate agent ( except if they are registered valuers, naturally). Be warned doing this will cost you anywhere between $300-700. Just another detail about house prices – If the trustee needs to sell off your house they do this fairly quickly. It is normally not a 6-month shiny advertising project and instead it’s normally by auction and they barely meet the market on the day and that’s it. So when thinking of the value keep in mind that it’s a sell now price, not when the market improves. Once you have figured out the market value of your home the next thing to look into is who owns your home. Typically when our clients are declaring bankruptcy many home loans are generally between two people as joint tenants who both support the home loan. Granted that only one party is declaring bankruptcy then the equity is worked out in this manner. Say your home is worth $400,000 and the latest market value is $350,000. Then the balance of equity in the home is $50,000, right? Fifty percent of that overall equity is automatically allocated to the party not declaring bankruptcy, leaving $25,000 for the bankrupt. From that $25,000 the declaring bankruptcy party has to take care of all of the selling costs including advertising etc.,

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which, depending upon where you live, can cost anywhere between $12,000-20 ,000. In this particular case say the marketing expenses are going to be $15,000 then the remaining left over after the sale is $10,000. So in this case the trustee will give the non-declaring bankruptcy party several choices. One of which is common is for the bank to say, “Pay us the $10,000 and we won’t sell the house and you will have it removed as an asset from the bankrupt’s estate.” Or, in short, work out a deal to pay the $10,000 and you can keep your house. Just a side note: the bank who has delivered you the home loan will need the repayments to be continued of course. No matter what the trustee decides, if you don’t pay the financial institution the property loan they will in the end ask you to leave. So, in plain English, keeping your home certainly implies retaining the mortgage also. There are many more options with your house when declaring bankruptcy, and we have really just detailed one option of potentially 20 options you can pick when it involves your property. We are aware that you will need to get this right. Trying one’s luck with the family home can be a devastating choice. If you intend to get the right advice about declaring bankruptcy or you simply just want to speak to someone call us on 1300 818 575.

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What happens to my credit rating?

Bankruptcy lasts 3 years and is going to remain on your credit file for that time. However, as with any default it will show on your credit file for 7 years. You can have it removed if you get your bankruptcy annulled.

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Would I ever have the ability to get a loan again when I'm bankrupt?

Bankruptcy is for 3 years and in that time you will not get a loan. After the 3 years is up you are going to have the potential to get loans; you just won’t get the very best rate. Your credit file will be wiped clean 4 years after you have been discharged as a bankrupt then you will have an optimal credit history in the future and you will get the most competitive deal on loans.

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Will I lose my car when declaring bankruptcy?

Typically, no. Bankrupts hardly ever lose their cars simply because they’ve filed for bankruptcy. Obviously, this is conditional and we can let you know if your car is safe. Call Bankruptcy Experts Maitland on 1300 818 575. How is this calculated? Well it is calculated based upon a threshold market value for your car. The threshold is the highest retail value your car could be worth, which is $7,350. You will find all sorts of incorrect information about this online, but here are the facts. That $7,350 represents not the total value; it represents equity. So, in other words, if you have a car worth $35,000 you are paying back or leasing and the amount you could sell it for is $30,000 then you can keep your car because its equity is only $5,000. The company that lent you the loan for the car will be pleased for you to manage to keep the car despite the fact that you are bankrupt as long as you keep up the payments.

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What if I am actually past due on my car repayments can I still declare bankruptcy?

Get some guidance with this. If you are thinking about declaring bankruptcy and simply need some advice as soon as possible call 1300 818 575. Basically, you will receive about two to three payments grace when it concerns car loans. The bottom line is basic: whether you are declaring bankruptcy or not, if you overlook three or more repayments on your loan they will repossess the car. Don’t think because you are declaring bankruptcy you are immediately going to lose your car because in most cases we help people retain them.

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When are the creditors advised of my bankruptcy?

The creditors, or the people you owe money to, are notified in writing at about the same time you receive your bankruptcy file number.

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Will anyone come to my home?

No. The declaring bankruptcy procedure is primarily a paperwork exercise. All that actually happens is that you will quite possibly be sent a letter by mail or emailed a letter informing you that you are actually bankrupt. At Bankruptcy Experts Maitland we make sure that this entire process is that uncomplicated, so if you have concerns about this phone 1300 818 575.

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Can I have my bankruptcy annulled?

Of course. This process will take about two weeks and will thoroughly eliminate the bankruptcy from your credit history. There are provisions within the Bankruptcy Act that permit a bankrupt individual to get their bankruptcy annulled with a Section 73 proposal. The consequences of creditor’s claims can commonly result in bankruptcy, notwithstanding if it was the person’s decision to enter bankruptcy, or if it was filed by a creditor. Nonetheless, bankruptcy is far from the end of the world for the person who goes through bankruptcy. We have been helping people declaring bankruptcy in the Maitland area for several years so phone us today on 1300 818 575 to get some understanding on this issue. We exercise probably the most suitable possible strategy for you in order to get back up and running, eliminating left over effects and hindrances of former financial circumstances to give you the best potential outcome. Having experience and skills specialising in Section 73 proposals, we can integrate this with our proven techniques and methods to bring you through bankruptcy unharmed, ready to start over. Initially, having your bankruptcy annulled is just about reversing it 100%. So if you are contemplating having your bankruptcy annulled there are a few things you will have to know. Firstly, just how does the annulment work? A easy way to comprehend it is this – let’s say someone owes you $50,000 and they have not paid you 1 cent back for years. Then to make matters worse you find out that they are declaring bankruptcy. You would kiss that money goodbye, right? Years pass and they come to you with an offer to pay you $5,000 that their grandparents are giving to them to resolve your debt with them. Certainly you are thrilled to take it, because it is much better than nothing. The only condition they ask for in return is that you consent to have the bankruptcy cleansed from their record, and if you don’t agree to do that then there will be no $5,000. Naturally you don’t care about their credit file; you are just pleased they are giving you some money after all these years. In bankruptcy terms this approach is usually called a Section 73 proposal, and it is really an approach where ‘everybody wins.’ Basically, the trustee contacts your creditors, shows your offer, which is drastically less than the original debt owed, on the condition they clear your credit file clean. This method takes a few weeks. The proposal can be done whenever you like in the 3 years you are bankrupt. However, you must consider the timing of your proposal; you don’t want to do it the day you are declaring bankruptcy because it does cost money to do this, you want to ensure the odds are on your side. For instance, if you are repaying money to the trustee each week because you earn over the threshold amount, then your creditors will know they are going to get a certain amount from you over the 3 years anyway so it better be greater than it will add up to. similarly, If you have merely been bankrupt three weeks it will certainly be more challenging to get an annulment since they may get some cash from you over the 3 years if you earn over the threshold sum of money. If you want help to put a section 73 proposal to your trustee or just need more information about the ideal time of when to put an offer forward, just phone us on 1300 818 575.

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Can I nevertheless go through the process of declaring bankruptcy if I am actually already in a Debt Agreement or Personal Insolvency Agreement or in a Debt Consolidation Loan Contract?

Yes! We can assist you cancel all of these agreements. With Debt Agreements and Personal Insolvency Agreements we will need to have you discharged from them first before you go through the pain of declaring bankruptcy, but it is really no worry. If you are locked into one of these and just cannot get on top give us call at 1300 818 575.

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Which debts won't declaring bankruptcy erase?

There really are very few debts that declaring bankruptcy won’t 100% get rid of, like Centrelink, child support, HECS and a court-imposed fine (speeding fines, etc.) and, lastly, money owed to an insurance provider because of a car accident in an without being insured while you were driving. Besides that, it will get rid of things like your credit cards, store cards, GST and tax, unsecured personal loans, etc. Honestly, there are a lot of things to list so if you have a particular debt you are worried about just call for a free assessment 1300 818 575.

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Is there actually a limitation to the sum of debt I can be in prior to declaring bankruptcy?

You can’t file for bankruptcy for an amount under $5,000; however, there is no limitation above that. If you owe a few million dollars, that is generally managed no differently compared to $20,000.

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What is generally the distinction between a secured and unsecured loan?

An unsecured creditor is a creditor who does not really have a hold over the chattels/assets/property obtained with the credit afforded to you. These kinds of debts include credit card debts. A secured creditor has a hold over the chattels/assets/property up until the debt is paid out completely. If a debtor defaults on a secured debt, the creditor can reclaim and sell the chattels/assets/property to pay down the unpaid debt.

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How can I ensure that you will succeed in making me bankrupt?

We have helped thousands of people go through the process of declaring bankruptcy over several years and we have certainly never had anybody’s application rejected. That is actually the reason that our company provide a 100% money back guarantee.

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Suppose I'm not entirely positive who I owe money to?

There is a general method we use here prior to declaring bankruptcy and all you have to do is get a copy of your credit history as it will have your credit history on there. Companies like www.veda.com.au will be able to get you a copy for a small fee.

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I've had a car accident. Will the financial debt be taken care of in bankruptcy?

Vehicle accidents may be tough, so to keep it straightforward call us on 1300 818 575 in order to get the best advice on your situation. Declaring bankruptcy may not be the right option. However, as a general rule, if you were driving a motor vehicle that was not insured then the expense of the repair works is not eliminated with the filing for bankruptcy process. Having said that, it depends upon who admitted liability or who was simply at fault. If you go to court and the court proves you were not at fault then you ought to be fine.

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Can I get business debts removed by declaring bankruptcy as well?

Yes! We can really help you do this, though it’s achievable there are actually consequences and lots of regulations around this process, so phone us and we will direct you through the procedure on 1300 818 575. Bankruptcy Experts Maitland are professionals at assisting companies get back on their feet.

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Can I pay out my bankruptcy debt and also have it annulled?

Yes. Generally there is an strategy to follow, but if you win lotto or inherit some cash you can use it in order to get your record wiped clean. There is actually a way of doing this properly; just call us first.

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Suppose someone is bankrupting me; is there something I should do?

Normally, if you owe money to a lender they could get a court order and then bankrupt you. They will need to follow a process, but it is actually possible. What you have to avoid at all costs if possible is somebody else bankrupting you, as it’s always best to voluntarily apply for bankruptcy. Unless you enjoy attending court and bothersome phone calls, of course.

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What happens if my business has received a Demand or Wind-Up notice; can I continue to go bankrupt?

Yes. However, this is actually a complicated process and we recommend you get some expert advice before declaring bankruptcy; if it’s handled improperly, it might be disastrous. For a free consultation call Bankruptcy Experts Maitland 1300 818 575.

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Do I need to reach out to my creditors?

No, we do that for you. In fact, we serve as a buffer or a midway point in between you and your creditors. So ultimately you are not actually obligated to advise them of your bankruptcy; we deal with that for you.

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How long does bankruptcy last?

Three years

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Just how long does it take to declare bankruptcy?

Generally, it takes about 2 weeks.

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What happens if somebody else signed for a loan (joint loan or guarantor) and I go bankrupt; will they still be liable for the debt?

Yes. Generally a lender will chase the other person who signed the loan files with you for the sum total of the outstanding money owing on the loan.

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What happens to a debt I forgot at the time of coming to be bankrupt?

Don’t worry! If you neglected a debt and remember it later, just get in touch with your trustee with the name of the creditor, address, date the debt was incurred, amount of debt and any account or reference number/s supplied by the lender. Your trustee will add the creditor to your bankruptcy and give a notice to the creditor.

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Do I have to go to court if I declare bankruptcy?

No. We take care of the entire process for you.

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What happens if I have gambled a bit of my income and I go bankrupt; will I get in trouble?

Typically this is not a dilemma, so if you are actually a gambler, don’t stress. What the trustee does not like is inconsistency here. Simply put, if you have never gambled in your life and all of a sudden you lost $50,000 on the horses, then you might just have some explaining to do, of course, because it just won’t add up and looks suspicious.

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Can my bankruptcy be carried out over the phone?

Yes. We recognize that you are busy. If you have a phone we can guide you; simply contact us on 1300 818 575.

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What happens if I'm living in a different country; can I still declare bankruptcy?

Yes. This is possible. It needs some emails back and forth but it can be done.

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Can I include my overseas bills in my bankruptcy?

Yes. If a person originally living in a different country is now residing in Australia then declares bankruptcy and they have a debt incurred from that foreign country, you just note that debt on the forms. In most cases the creditor internationally will erase the debt. It is potential and lawful for them, however, to deny your application, and if you return to that country you may be subject to their bankruptcy laws.

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How will the trustee know what assets I have?

There are actually a few ways the trustee can discover, and the most effective and easiest way is for you to let them know when we do the paperwork. There is also a government website that has primary assets listed also. You ought to get some guidance about assets; take care.

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Can I keep an inheritance if I file for bankruptcy?

This is complicated and you are going to want the best support, so if you need extra information about inheritances contact us on 1300 818 575.

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Will I lose my Pension or Workers Compensation payments if I go bankrupt?

No. The income thresholds are the same for everyone so regardless of how you get your income you will have to earn about $50,000 every year before your income will be influenced by bankruptcy.

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Will I manage to keep my tax returns when I'm bankrupt?

You can keep money from tax returns simply if you did not have any tax debts. So if you owed money to the Tax Office when you went bankrupt at that point they will get your tax return. The explanation for this is because your income tax return is considered as net income, so if you are below the threshold amount you can earn while bankrupt and provided you didn’t have those other debts then you will get your entire tax return back.

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What about child support?

If you are required to pay child support, this money will be deducted from your net income, so what you have the ability to keep after you pay your tax then child support is thought about as net income. Which is why when declaring bankruptcy, the net income numbers are always quoted.

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Can I buy shares and make investments while I'm bankrupt?

Yes, but it’s not a good idea. You are permitted even while you are declaring bankruptcy, but the trustee will take them from you, as they are deemed an asset.

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What assets can I keep if I go bankrupt?

You can keep almost everything when declaring bankruptcy except big things like houses, cars, shares and inheritances. Even items like houses and cars may be able to be saved. Simply call us before you make any rash decisions on 1300 818 575 for Bankruptcy Experts Maitland.